28/03/2026
What is an Open Deed of Absolute Sale? Is it legal?
Open Deed of Absolute Sale is a signed but incomplete deed of sale where certain key details—usually the buyer’s name—are intentionally left blank at the time of signing.
🔑 What it means
The seller signs the Deed of Absolute Sale
The buyer’s name is not yet filled in
The document can later be “assigned” or transferred by simply writing in a different buyer’s name
📌 Why people use it
To allow flexibility in transferring ownership without executing a new contract
Common in:
1. “Pasalo” or assumed properties
2. Investment flipping (quick resale without full transfer yet)
3. Avoiding immediate taxes/transfer costs (⚠️ risky)
⚠️ Risks and Legal Issues
1. Not fully legally secure
The transaction may be questioned because the true buyer at the time of sale is unclear.
2. Tax evasion concerns
Authorities like the Bureau of Internal Revenue may treat this as an attempt to avoid proper taxes.
3. Double sale risk
Since ownership isn’t properly recorded, the same property could be sold to another party.
4. Problems in title transfer
The Registry of Deeds may reject or scrutinize documents with inconsistencies.
5. Fraud exposure
Anyone holding the document could insert their name and claim ownership.
✅ Best Practice
Even if it’s commonly used in the market, it’s not recommended.
Instead:
Execute a proper Deed of Absolute Sale
Complete the title transfer immediately
Pay the correct taxes (CGT, DST, transfer tax)
💡 Simple takeaway
An Open Deed of Sale = convenience + flexibility BUT high risk
A Proper Deed of Sale = safer, legal, and protected
If you find this helpful feel free to like and share. Thank yo!